Z-score


Also found in: Dictionary, Medical, Encyclopedia.
Related to Z-score: T-score, Altman Z-Score

Z-Score

In statistics, a quantification of the distance of a datapoint from the average of a set of datapoints. A z-score of zero indicates that that the data point is equal to the mean or average. It is often used to measure a person's or company's likelihood of bankruptcy.

Z-score

a composite score, summarizing the weighted results of a number of ACCOUNTING RATIOS, that claims to predict a company's likelihood of failure. Z-scores were developed by distinguishing the values of various performance-and-liquidity ratios for companies which had gone bankrupt and for those which had prospered. Those accounting ratios which proved t o discriminate effectively between failed companies and successful ones were incorporated in a standard formula to calculate an aggregate Z-score. Analysts can calculate Z-scores for particular companies, and use the results to try to predict whether companies are likely to fail.
References in periodicals archive ?
As an example, table 1 presents the attributes of a randomly selected CPS respondent and their effects on the respondent's z-scores.
Weight status was assessed using the WHO weight-for-length z-scores growth charts, which are age- and sex- specific (13).
Children who grew from average to above average height (0.5 z-score change is equivalent to 4.0 cm additional growth in height for boys and 3.5 cm for girls) had an 8% increased risk of RCC.
Both in the presence of RF and ACPA, the ACPA affected negatively the lumbar Z-score even at low RF titrations (17).
The relationship between patients' pubertal status, disease risk category, craniospinal radiotherapy history, BMI, and bone age with Z-score is shown in Table 1.
Moreover, it is also interesting to know that high Z-score stocks have relatively stronger correlation with P/E ratio at 13 percent as compared to low Z-score that has 0.4 percent.
The reason is that the relative cost of information and switching to a client is high which do not allow a client to walk away from a lending relationship this could be a reason for IATA has an insignificant relationship with Z-score. Moreover, the very plausible reason that IATA is insignificant because of increase dependency of government borrowing from commercial banks (Economic Survey 2009, Economic Survey 2015, Economic Survey 2016).
Complementarily, the performance of the Z-score model was evaluated, in accordance with Chiaramonte, Croci, and Poli (2015), but with different results.
Name, father's name, gender, weight, height, status of height, and weight on Z-score charts, and marks obtained in the test were recorded.
For each risk factor, a z-score was calculated (individual value--sample mean/standard deviation of the sample).